Nvidia Corp.’s stock appears set for a significant 37% increase, as projected by KeyBanc Capital Markets analyst John Vinh in his latest price-target revision. Vinh has raised his price target on Nvidia shares from $130 to $180, driven by his strong confidence in the revenue potential of the company’s upcoming Blackwell chip lineup. In particular, Vinh estimates that Nvidia’s GB200 chip, a critical component of the Blackwell family, could generate more than $200 billion in data-center revenue by 2025.
Vinh’s optimism is largely fueled by the unabated demand for artificial intelligence (AI) technologies. He believes that this persistent demand will sustain Nvidia’s growth trajectory, contributing significantly to the company’s financial performance. Despite Nvidia’s stock pulling back slightly from its daily highs, the stock still rose by 2.5% during Tuesday’s trading session. Vinh’s updated price target indicates nearly 40% upside potential from the current levels, highlighting the substantial market opportunity he envisions for Nvidia.
In addition to his bullish outlook on Nvidia, Vinh also revised his stance on Micron’s stock, reflecting a more favorable outlook. He noted that Samsung is encountering difficulties in qualifying for Nvidia’s HBM3e, a type of high-bandwidth memory, due to performance and manufacturing yield issues. This development is advantageous for Micron, as it increases the likelihood that the company will capture a significant share of the HBM3e market, potentially surpassing its traditional share of the dynamic random-access memory (DRAM) market. As a result, Vinh raised his price target for Micron from $160 to $165. Although Micron’s stock only rose fractionally in Tuesday’s trading after initially seeing stronger gains, the long-term outlook appears promising.
However, not all semiconductor stocks shared in the day’s positive momentum. Advanced Micro Devices Inc. (AMD) saw its shares dip by 0.9%, following a 9% increase over the prior two sessions. Vinh adjusted his price target for AMD downward from $230 to $220, citing “mixed” signals from recent discussions within the Asian supply chain. Despite the downward revision, he maintained an overweight rating on the stock. Vinh acknowledged that improving traditional server demand could act as a tailwind for the continued ramp-up of AMD’s Genoa processors and anticipated strong demand for 500,000 MI300X graphics-processing units. Conversely, he pointed out that embedded demand remains weak and the sector continues to face challenges due to inventory destocking.
The semiconductor sector is currently experiencing a varied landscape, with Nvidia and Micron showing strong potential for growth, while AMD faces some near-term uncertainties. Nvidia’s position is bolstered by the anticipated success of its Blackwell chip lineup and the ongoing demand for AI technologies. Micron stands to benefit from Samsung’s struggles with HBM3e, potentially allowing it to gain a larger market share. On the other hand, AMD’s mixed signals from the supply chain and inventory issues pose challenges, despite positive indicators in server demand.
Investors will be closely monitoring these developments as market dynamics evolve. Nvidia’s future looks particularly bright with significant revenue prospects tied to its new chip lineup, while Micron could capitalize on its competitors’ missteps. AMD, although facing some headwinds, still holds potential if it can navigate supply chain complexities and capitalize on server demand. The semiconductor sector remains a critical area of focus for investors, given its pivotal role in the ongoing technological advancements and AI-driven growth.